The Home Energy Scotland Grant and Loan scheme opened in June 2023, offering Scottish homeowners grant funding of up to £7,500 for energy efficiency and zero-emission heating improvements, with an optional interest-free loan of up to £7,500 available alongside it1. For rural households, the grant amount can increase to £9,0001. The scheme has no announced end date2.
To be eligible, applicants must be homeowners in Scotland; private landlords cannot apply, though they may be eligible for the Private Rented Sector Landlord Loan1. Eligible improvements include boilers and heating systems, insulation (cavity wall, floor, solid wall and roof), draught proofing, and windows (replacing single glazing only)1. While the scheme did cover solar PV and energy storage systems, as of 6 June 2024 new referrals for these installations are no longer provided1.
The scheme sits within a wider Scottish Government programme. Since 2020, the Scottish Government has allocated £1.67 billion of funding through its Heat in Buildings schemes, including over £840 million for energy efficiency and clean heat projects, and has supported an average of 15,000 households a year to decarbonise3. Since the launch of Warmer Homes Scotland, over 47,000 households across Scotland have been helped to live in warmer homes that are more affordable to heat3.
In a related announcement, Housing Secretary Màiri McAllan confirmed additional grant support for homeowners of up to £7,500, or up to £9,000 for households in island and remote rural areas, from December to incentivise connections to local heat networks3. This grant support will be introduced through the Home Energy Scotland Grant and Loan scheme3.
"Up to £7,500 of grant funding will now be available to homeowners, in addition to the optional £7,500 interest free loan."
The Scottish Government has also laid new Energy Performance Certificate regulations which will bring an improved EPC rating system into force in autumn 20263.
| Item | Amount |
|---|---|
| Grant (standard) | Up to £7,5001 |
| Grant (rural) | Up to £9,0001 |
| Optional interest-free loan | Up to £7,5001 |
| Heat network connection grant | Up to £7,500, or up to £9,000 for island and remote rural areas3 |
Why it matters for households
For a Scottish homeowner, the scheme reduces the upfront cost of measures that cut a home's demand for bought energy, such as insulation and draught proofing, and of switching heating away from direct emission systems1. The grant element does not have to be repaid; the loan element is interest-free but remains a debt1. Households in rural areas can access a higher grant ceiling, reflecting the different costs and options in those locations1. The removal of new referrals for solar PV and energy storage from 6 June 2024 means those measures can no longer be funded through this route1. The separate heat network grant support, available from December, is aimed at households able to connect to a local heat network rather than install individual heating3.
What happens next
The Scottish Government will not introduce a Heat in Buildings Bill in the current session of the Scottish Parliament, and intends to bring forward legislation as early as possible in the next parliamentary session, subject to the outcome of the 2026 election and clarity on the UK Government position3. A draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill has been published3. The Scottish Government will launch a targeted further consultation in the new year on detailed proposals for heat network installation and maintenance licences3. The improved EPC rating system comes into force in autumn 20263.